Lake Elmo adopts utility rate increases; council approves ordinance amending 2026 fee schedule

Nina Kramer presented updates to Lake Elmo’s utility financial management plan on March 17 and proposed rate adjustments for 2026 to improve revenue sufficiency and address long‑term expenses and depreciation.

Kramer said staff used updated CIP, 2025 usage and customer counts and development assumptions to produce a 2026–2035 plan. For 2026 the plan retains a 20% water increase, adjusts the sewer increase to 15% (previously proposed at 20%) and raises stormwater rates by 8% to keep the overall household bill around a 15% increase target. Kramer outlined estimated bill impacts: low residential water users would see about $2.88/month for water, sewer about $3.34/month, and stormwater about $0.63/month — for a combined average increase of roughly $12.56/month (about $37/quarter).

Council members questioned a chart that showed a revenue spike in 2026 and 2027; Kramer and another staff member clarified that grant receipts tied to a temporary water treatment plant are recognized as revenue under full‑accrual accounting, and the related expenses are capitalized and depreciated over time. Council members also discussed whether to bond for larger stormwater projects (including a 2028 Lions Park drainage project) or to pay cash; Kramer said she modeled the largest stormwater project as a bond option in the plan but noted more conversation is needed on long‑term funding strategy.

Council moved to approve Ordinance 20 26 dash 0 3 amending the 2026 fee schedule to include the utility rate updates. The ordinance passed by roll call vote. Council did not authorize publication at the meeting because four members must be present to do so; publication will be scheduled at a subsequent meeting when the required quorum is available.